Fee Structure & Revenue Stream of ConvergeX

How does ConvergeX users and the team earn revenue?

The fee structure of ConvergeX is designed to prioritize the interests of its users and maintain the sustainability of the protocol. ConvergeX does not charge any performance fees for its services. All yields generated by the plugins are distributed to the voters without any deductions by the team. The goal is to ensure that voters receive the full yield, thereby increasing the demand for locking $CVGX into $vCVGX.

You might be wondering how ConvergeX and its team earn fees. The answer lies in the bonding curve fees. ConvergeX Bonding Curve has a fee of 0.6%, with half of this fee going to the stakers and the other half allocated to the team treasury. This team treasury is used to cover expenses such as team & development, hosting, API services, and UI services.

We see ConvergeX as a unique service provider on Polygon zkEVM, and we believe the 0.6% fee at the bonding curve's entry and exit points is a fair way to support its operations. Users who wish to hold an omni-LP like vCVGX which enables them to farm all assets of the ecosystem (by voting for plugin gauges), receive rewards, and borrow against their wETH while maintaining liquid voting power, are entering a new world in ConvergeX can enter the system by paying a 0.6% fee & exit the same way. Other than that, our protocol avoids microtransactions within its ecosystem, such as the team taking a cut from the plugin yield.

Furthermore, ConvergeX aims to establish a level of sustainability, ensuring its resilience in various market conditions. We have seen how the crypto market can change from day to day, and the 0.6% fee, distributed between the team treasury and stakers, is a strategic approach to guarantee the protocol's sustainability. This fee structure ensures that expenses are consistently covered, and stakers continue to receive yields from buy and sell transactions on the bonding curve, promoting a sustainable yield for both users and ConvergeX team itself.